In his last letter to employees as chairman of the $100- billion Tata Group, Ratan Naval Tata thanked them for their contribution and support, while exhorting them to be aware of the myriad challenges of the future.
?I want to convey to you how privileged I have been to have had the opportunity of leading this great Group over the last two decades through good times and bad,? Tata, who turned 75 on Friday, wrote to over four lakh employees of the group. ?Whatever has been achieved had been possible only because of the amazing spirit, the dedication of each one of you and the enormous support and faith reposed in me, for which I am deeply grateful and appreciative.?
Tata used the opportunity to reflect on the challenges in the over two decades he was chairman, after taking over the reins of the salt-to-software group in 1991 from JRD Tata. ?I feel immensely proud of the manner in which employees and companies have come together in facing crises from time to time. These have included adverse market conditions, natural calamities like earthquake and tsunami and gruesome acts of terrorism.?
Every employee can be proud of the Group’s achievements, Tata said. ?We, today, are a $100-billion group in revenues. Over past 20 years, our revenues have grown about 20 times and today 58% come from overseas operations. Our brand has emerged as the 45th global and the number one Indian brand. Our products and services are present in 85 countries.”
He, however, warned of the dark clouds ahead. ?The difficult economic environment that we face in the current year will most likely continue through most of the next year,? said Tata, whose $10 billion acquisition of Corus Plc in the UK in 2007 had so far failed to deliver the desired results. ?We will probably see continued constraints in consumer demand, over-capacity and increased competition from imports.?
?There will, therefore, be great pressure on our companies to reinvent themselves in terms of business processes and to dramatically reduce costs, to be more aggressive in the market place and to widen our product range to better address consumer needs,? Tata, who handed over reins of the group to 44 year old Cyrus Mistry on Friday. ?We will also need to contain our borrowings and work hard to retain our margins.? Tata, who scripted a dramatic turnaround at the Jaguar Land Rover, had earlier lamented the group hasn?t been able to work out the right strategy for its passenger cars under Tata Motors, especially the low cost Nano, his dream project.
?This environment would once again call on you for your support, your commitment and your dedication to achieve success in these somewhat difficult times.? Tata, who is expected to spend much of his retirement life working on the various trusts belonging to the group, signed off with a silver lining.
?This seemingly gloomy picture, however, will be a passing phase. I feel confident that the robust growth that India has shown over the past several years will be re-established and the strong fundamentals in the country will result in India once again taking its place as one of the economic success stories of the region.?
The man who many observers say will have a pride of place in the Group?s hall of fame among others like founder Jamsetji Tata and JRD Tata, said the Group will ?undoubtedly play an important role in the continued development of our country, providing leadership in various industrial segments in which they operate and living by the value systems and ethical standards on which our Group was founded.?
He urged the Tata employees to rally behind Mistry in the path ahead. ?The future growth of the Group will be led in the coming years by Cyrus Mistry. I am sure that he will receive from you the same support, the same commitment and the same understanding that I have enjoyed over the years. Tatas are a Group where I feel proud to have belonged and proud to have been associated through the years. I wish the Group, Cyrus Mistry and each of you great success in the years ahead.?
“I hope the Group grows and shines in the coming years,? he wrote in the letter.
HIGHLIGHTS FROM THE farewell letter
* I want to convey to you how privileged I have been to have had the opportunity of leading this great Group over the last two decades through good times and bad
* I feel immensely proud of the manner in which employees and companies have come together in facing crises from time to time. These have included adverse market conditions, natural calamities like earthquake and tsunami and gruesome acts of terrorism
* We, today, are a $100-billion group in revenues. Over past 20 years, our revenues have grown about 20 times and today 58% come from overseas operations. Our brand has emerged as the 45th global and the number one Indian brand. Our products and services are present in 85 countries
* The difficult economic environment that we face in the current year will most likely continue through most of the next year. We will probably see continued constraints in consumer demand, over-capacity and increased competition from imports.
* There will, therefore, be great pressure on our companies to reinvent themselves in terms of business processes and to dramatically reduce costs, to be more aggressive in the market place and to widen our product range to better address consumer needs
* We will also need to contain our borrowings and work hard to retain our margins
* This seemingly gloomy picture, however, will be a passing phase. I feel confident that the robust growth that India has shown over the past several years will be re-established and the strong fundamentals in the country will result in India once again taking its place as one of the economic success stories of the region
* The future growth of the Group will be led in the coming years by Cyrus Mistry. I am sure that he will receive from you the same support, the same commitment and the same understanding that I have enjoyed over the years. Tatas are a Group where I feel proud to have belonged and proud to have been associated through the years. I wish the Group, Cyrus Mistry and each of you great success in the years ahead
